Axelum lowers maximum IPO price

MANILA, Philippines — Axelum Resources Corp. has lowered its maximum initial public offering price to P5.72 per share from P6.81 per share.

In a disclosure to the Philippine Stock Exchange yesterday, Axelum said it would announce the final offer price on Sept. 20 after a bookbuilding process.

The company revised the maximum offer price to optimize investors’ interest, Axelum president Henry Raperoga said.

“By updating the maximum offer price, we aim to optimize investors’ interest and appetite in our local stock market, include more investors, while still maintaining funding for our strategic plans,” Raperoga said.

Axelum plans to sell up to 700 million primary shares and 430 million secondary shares.

The offer period for the share sale will run from Sept. 24 to 30, with the target listing date set  on Oct. 7.

Axelum, which will carry the trading symbol AXLM, is the second of only three IPOs that have been approved by regulators for listing this year.

The company plans to use the net proceeds to expand its network, its distribution channels and to introduce new products.

A portion of the proceeds will also be utilized to retire the company’s loans, reduce payables, and for other capital expenditure requirements.

The company tapped First Metro Investment Corp., the investment banking arm of the Metrobank Group, as issue manager and bookrunner.

Axelum is a leading manufacturer and exporter of desiccated coconut, coconut milk powder, coconut milk and cream, reduced fat coconut, sweetened/toasted/roasted desiccated coconut and other coconut products.

It is also a major manufacturer of coconut water for customers such as Vita Coco, the leading coconut water brand in the world.

At present, its products are available in the domestic and international markets and are sold to food and beverage companies, confectioneries, bakeries, private label supermarkets and grocery store chains, food service industries, coconut coffee creamer manufacturers and diet prepared food market.